PSA, the parent company of French automakers Peugeot and Citroen, has said that it is looking for a strategic partner in order to “rise in the global rankings of carmakers” by sharing platforms in order to reduce skyrocketing development costs due to increased compliance demands.
PSA might be looking to follow in the same direction – at least conceptually – as fellow French automaker Renault, which has been in a generally successful alliance with Japanese automaker Nissan since 1999.
“If we can’t become more global more quickly through organic growth alone, we won’t hesitate to seize opportunities for external growth and partnerships,” PSA CEO Philippe Varin told the Financial Times.
“We won’t hesitate to co-operate with other carmakers to share development expenses and launch projects at lower cost.â€
All automakers are intense financial pressure due to the economic downturn, as well as by governments of North America and Europe, which have instituted ever-stricter emissions and fuel consumption requirements.
Fiat?
Fiat CEO Sergio Marchionne has not been shy about stating that his Italian automaker would like to grow, either by acquiring or partnering with other automakers. Since Fiat lost the bid for Opel to Canada’s Magna International, some have suggested that PSA could be a match made in heaven for the Italians.
Peugeot and Fiat talked earlier this year about an alliance – something analysts expect could resume. Though Fiat and PSA have much product and distribution overlap, their combined production output could be significantly streamlined by partnering on future platforms.
Don’t expect to see Peugeot or Citroen vehicles in North America should a partnership pan out, however. Fiat has its plate full trying to straighten out Chrysler and the automaker has already said it will begin importing the Fiat 500 and, eventually, some Alfa Romeo s.
